The Sabesp, one of the largest sanitation companies in Brazil and the world, provides drinking water and treats the sewage of millions of people. Its privatization could significantly improve operational efficiency and company management.
Privatization is expected to increase investments in Sabesp, anticipating the universalization of water and sewage services.
With new resources, the company could expand its infrastructure, improve distribution and treatment systems, and reach unserved areas, attracting more national and international investments due to its growth potential and profitability.
Sabesp’s biogas and biomethane production unit in Franca (SP). Through privatization, Sabesp will be under greater pressure resulting from a new contract, which establishes modern regulations suitable for a private company, including a series of requirements.
The unification of all municipalities in a single contract and the significant extension of the deadline are only possible thanks to the new sanitation framework, made viable through privatization.
Private companies adhere to higher standards of transparency and corporate governance, reducing political interference and allowing decisions based on economic and market criteria, resulting in more rational and efficient management.
The privatization proposal includes an important social aspect: a 10% reduction in the tariff for low-income consumers, covering families registered in the CadÚnico with a per capita family income of up to half a minimum wage.
Additionally, the proposal sets goals to serve informal areas and rural zones not covered by current contracts, benefiting the lower-income population.
The privatization of Sabesp is expected to generate substantial revenues for the State Government of São Paulo. The funds obtained from the sale of the company’s shares will be reinvested in priority areas, with 30% of revenues allocated to the Fausp.
Empirical research shows that municipalities with private water and sanitation operators experienced reductions in tariffs and significant improvements in sewage collection and treatment.
These improvements have a positive impact on public health, reducing the incidence of waterborne diseases and decreasing the demand for medical treatments.
A recent study highlighted the benefits of a government program that built about a million cisterns in the poorest and driest region of Brazil.
Access to cisterns early in pregnancy had a positive impact on the birth weight of babies, especially among mothers with higher education levels. These cisterns provided a source of safe water and significantly contributed to the health and well-being of the benefiting families.
It is crucial for the State to monitor and oversee to ensure that the expected benefits of privatization materialize. Regulation and control of the sanitation public policy will be even more important to align interests and generate public value with the privatization process of Sabesp.
Privatization is a relevant topic in terms of public policy, requiring careful analysis due to its implications for the population.
In the case of Sabesp, privatization could significantly contribute to sustainable development and improve the quality of life, especially for the lower-income population.
